AccuVein Inc., a Huntington-based medical device company, has secured an $8 million venture loan from specialty finance company Horizon Technology Finance Corp.
Unlike most funding deals for startups that involve equity stakes in companies in exchange for funding, the deal for AccuVein utilized loan financing.
"The debt instrument .?.?. is favorable to equity because it doesn’t have a dilutive effect. We’re at a very nice stage our revenue is growing robustly," said AccuVein chief executive Ron Goldman. The funding will be use to scale up sales efforts in the U.S. and internationally, he added.
AccuVein sells a device that is used to illuminate a person's veins, making it easier for doctors to insert IVs and perform other similar procedures. The product is currently used in over 1,600 hospitals. The company, founded in 2006, employs around 10 workers on Long Island and 50 employees total across the United States. AccuVein has previously secured more than $23.5 million in venture capital funding.
Farmington, Conn.-based Horizon provided $4 million of the loan, and the rest came from undisclosed parties.